Just like personal credit cards, high limit business credit cards can give you increased purchasing power so you can get what you need now and pay for it later. Business credit cards with high limits work similarly to personal cards. You can make purchases and withdraw cash, and you’ll pay an interest charge if you don’t pay back the full balance when it’s due.

Businesses might be interested in small business credit cards with high limits for reasons including:

  • You can get a higher limit than your personal credit card allows.    
  • Small business credit cards with high limits enable you to start building a business credit profile, which can help when you want to apply for small business loans.    
  • High limit small business credit cards enable you to separate personal and business finances.    
  • Business credit cards with high limits help with record keeping since your purchases are all recorded.    
  • You can set individual card limits to keep employee spending in check.    
  • The best high limit business credit cards usually include rewards programs, so you can reap benefits for using your card and paying it off.

High limit credit cards for small business may be beneficial for your company. Here’s a look at how to apply and how to qualify for the best business credit cards with high limits, the pros and cons of high limit business credit cards and alternatives.

How to Apply for High Limit Small Business Credit Cards

You may have compared options for your personal credit card(s), depending on what type of spending limits they offered and the rewards they provided. Same goes for business credit cards with high limits.

You might start with your personal bank to see what they offer, then compare that option to other credit cards. Ask your business network for recommendations so you know what to compare.

An advantage to applying for a high limit credit card for your business with your existing bank is that you already have established a relationship with that bank. Even if you’re issued a card with a lower limit than you’d like, you can check in every year to see if you can increase your limit based on your on-time payments and debt control.

Improve Your Personal Credit When Applying for Business Credit Cards with High Limits

Applying for high limit small business credit cards is similar to applying for a personal credit card. The issuer will look at your personal credit history, which is the main consideration for issuing you a card because the application relies on your personal guarantee of repayment. You can improve your credit score by reducing your personal debt and making on-time payments.

You can also improve your personal credit score by maintaining open accounts for a long period of time, making on-time payments to many credit accounts and avoiding opening up many new accounts in a short period of time. The earlier you can take these steps before applying for a small business credit card, the more likely you can prove your personal creditworthiness when you apply.

Reduce Your Debt

Get rid of outstanding balances on personal accounts before you apply for the best high limit business credit cards. An issuer will be less likely to give you a business credit with a high limit when you already have significant outstanding debts.

Pros and Cons of Business Credit Cards with High Limits

High limit small business credit cards provide some benefits, but they might not be right for your business. Let’s break down the pros and cons of high limit credit cards for small business.

Business Credit Cards with High Limits: Pros

Just like some people prefer to use a personal credit card versus cash for a variety of reasons, high limit small business credit cards can provide benefits.

Rewards: High limit business credit cards often offer rewards programs. Some rewards might be cash back based on purchases. Other reward categories directly benefit your business, like social media and search engine ad purchases, travel, shipping purchases or internet, cable and phone services programs. Other credit cards feature welcome bonuses, 0 percent intro APR periods and higher cash back rewards on business costs like office supplies, cell phone services, etc.    

High rewards for high credit scores: If you’ve maintained a high personal credit score, you can be rewarded with the best high limit business credit cards and the rewards that come with them. If you’ve worked hard to keep your personal credit score at a high level, the rewards on a business credit card may be worth it.

No deposit or collateral: Unlike some other types of small business funding, unsecured credit cards don’t require a deposit or collateral.    

Cash when you need it: Having a small business high limit credit card means you’ll have access to cash to deal with an emergency that pops up.    

Online transactions are easy: Investopedia points out that one attractive feature of high limit small business credit cards is the ease of which you can make large purchases online. (1)

Like any credit card, your business must be able to make payments on time or else incur interest fees. Here’s a look at some of the cons.

High Limit Business Credit Cards: Cons

While having access to quick cash can be beneficial, there are some potential downsides to high limit credit cards for small business to be aware of.

Fees: Some credit cards charge annual fees. Even if you get rewards, if you’re not making enough big purchases, the card might not be worth the fees.    

Limited options: To get the best high limit business credit cards, you need to have excellent personal credit. Otherwise, you might not qualify for credit cards whose limits are as high as your business needs.   

There’s still a limit: Even the best high limit business credit cards still come with a limit of what you can spend, while other forms of business funding may come without limits.   

Interest: If you’re not going to be able to pay off a large purchase in a certain amount of time, you could incur costly interest fees. Plus, high limit credit cards for small business tend to have higher interest rates than funding, like a small business loan.   

Required control: If you have money management problems, you could max out your credit card and have no funding source. Also, not being able to repay a business credit card can result in a hit to your personal credit.      

Security issues: Business credit cards have inherent security issues since they can be stolen, reproduced or used the wrong way.   

It’s vital to weigh the pros and cons of high limit small business credit cards before you decide they’re a fit for your business.

Alternative to Best High Limit Business Credit Cards: Business Line of Credit

If you’ve considered high limit credit cards for your business, you should also consider a business line of credit. A business line of credit has similarities to a business credit card but has some unique advantages.

  • Business lines of credit typically have higher credit limits than business credit cards.         
  • Credit score requirements for a high limit line of credit are typically lower than high limit business credit cards.    
  • You can get fast capital without much paperwork, with funding as fast as 1 day.     

It’s always a good idea to explore your options and compare funding solutions for your business. To talk about a business line of credit and how it might benefit you, chat with us.

Join 20,000+ businesses & get industry news & insights to your inbox weekly